Monsanto has confirmed that it has received an updated non-binding proposal for a potential acquisition of the company from Bayer for $127.50 per share in cash.

This latest offer from Bayer is the equivalent of offering $65 billion (€58 billion), including debt, for the US company known for its GM seeds for crops and chemicals.

Monsanto has been engaged in what it says have been “constructive negotiations” with Bayer while Bayer has described the negotiations as being at an “advanced” stage.

In May 2016, Bayer offered $122 per share, or an aggregate value of $62 billion for Monsanto, however this offer was rejected and deemed financially inadequate.

A Bayer and Monsanto merger could create the world’s largest supplier of seeds and pesticides. The proposed measure could cause competition issues, as it would hold a substantial size of the global seed and pesticide market.

Earlier this year, Monsanto offered to acquire Syngenta, the Swiss agro-chemical company, however the takeover offer was rejected. Syngenta was then acquired by ChemChina, the Chinese state-owned chemical company.

ChemChina’s takeover of Syngenta was recently given clearance by the Committee on Foreign Investment in the United States (CFIUS).

This year has also seen the merger of  Dow and DuPont, two other major chemical and seed companies, however the merger is under investigation by the European Commission amid competition issues.

The Commission is to investigate further whether the deal may reduce competition in areas such as crop protection, seeds and certain petrochemicals.

The proposed merger between Dow and DuPont, both of the US, would create the world’s largest integrated crop protection and seeds company, the Commission has said.

Furthermore, it said it would combine two competitors with leading herbicides and insecticides portfolios and with a strong track record of bringing innovative crop protection and seeds products to the market.